Mr. Speaker:
I remain humbled by the opportunity to sit in this place and to rise on behalf of the people of Cat Island, Rum Cay, & San Salvador. I again thank my constituents for electing me and providing me the opportunity to serve and address their very diverse needs.
As a Minister, there are times when life becomes very busy, but we must always remember those who first caused us to sit here to advocate on their behalf.
Mr. Speaker:
Over the Randol Fawkes Labour Day Weekend, it was very refreshing for me to return down home to attend the Cat Island Rake and Scrape Festival and celebrate my birthday with constituents. I attended the South Andros Regatta I am happy to report that indigenous music, dance, food, arts and craft are alive and well in Cat Island.
Over the same weekend, South Andros and Long Island each hosted its Regatta; and North Eleuthera successfully delivered Pineapple Fest.
Mr. Speaker:
That weekend boasted unheard numbers of city-dwellers and home-goers presenting and participating at all these events. This participation tells us that the Family Islands are rising like a phoenix from the ashes. And speaks to the economy of our Nation Awakening from its slumber. The fact that young people are key participants in the festival is also encouraging because it confirms that our culture is being embraced and passed on for the edification of future generations.
It also tells us that Bahamians are ready and willing to get away from the hustle and bustle of the Capital; not only for a weekend, but for life…if the infrastructure is in place, if the opportunity presents itself, and if the economy of those islands would allow for making a decent living.
This is what the people are telling us. New Providence and Grand Bahama are not The Bahamas. We have to do more to ensure that our other islands welcome Bahamian re-settlers. We have to do more to ensure that there are incentives for Bahamians to be able to remain at home. We have to do more, and we ARE doing more.
Mr. Speaker:
I am pleased to present by way of this communication, a record of my stewardship as the Minister of Works & Urban Development over the past year; and to set out the plans of my Ministry and those agencies for which I have portfolio responsibility.
This budget will enable my Ministry to further pursue certain high priority initiatives to upgrade and maintain public infrastructure. There is much work to be done on New Providence but, more particularly, in the Family Islands.
My Ministry has not gotten the full complement of its wish list; however, we are committed to doing the best with what the 2014/2015 Budget Communication has allocated.
Moreover, we are committed to drawing on the precepts of accountability, administrative efficiency, and fiscal prudence.
Mr. Speaker:
These precepts will contribute to reducing the amount of capital expenditure relative to the size of the economy so that capital expenditure will be in line with the projection not to exceed 3.7% of GDP in 2014/2015.
Department of Public Works
Mr. Speaker:
My first area of concentration is the Department of Public Works.
Mr. Speaker:
The most recent KPMG Report noted that my Ministry’s plans for new capital works account for $13.9 million of the increase of the total national capital expenditure1. This statement is justifiably true and should be put into the proper context.
Mr. Speaker:
I invite this House to recall that during the 2012/2013 fiscal year, my Ministry’s capital budget was $229 million. As the 2013/2014 fiscal year approached, my Ministry knew that we required a minimum of $125 million in order to complete the existing projects and settle any costs associated with them.
However, not getting what we required, my Ministry had to be resourceful in its efforts to get maximum value from its allocation, which was significantly reduced to approximately $112 million (to include $10 million for Urban Renewal).
Because my Ministry now had to work with the challenge of decreased required funding, several large-scale contracts including North Abaco Port and Marsh Harbour International Airport had to be properly managed. Meanwhile, the Bahamas Agricultural and Marine Science Research Institute (BAMSI) project in North Andros with an overall contract value of more than $25 million was added, with commitments of around $15 million to be spent in this fiscal year. The net effect of the prudent management reduced the Department’s budget need by approximately $5 million.
Mr. Speaker:
My Ministry spent all of its allocated capital budget for 2013/2014, that is, $112 million. In fact, due to further delays in the North Abaco Port as well as delays in agreeing the final account for the Airport Gateway project, the projected spend for 2013/2014 budget year is approximately $120 million. Neither what we know nor what we project to have spent takes into consideration a $14 million supplementary component applied to the BAMSI project in the budget year. Taken together, they total $126 million or $134 million, respectively.
Mr. Speaker:
Fiscal constraints dictated an The allocation of $125.9 million to my Ministry’s capital budget for 2014/2015. This represents the bare minimum required to meet expenditure for existing contractual commitments, to facilitate essential maintenance and to allow for desirable new projects. However, we are determined to achieve as much as we can achieve for the benefit of the people of The Bahamas.
Review of Contracts Recently Completed and On-Going with Commitments into 2014/2015 Fiscal Year
Mr. Speaker:
During the 2013/2014 budget year, my Ministry completed several projects, which substantially contribute to the desired reduction in expenditure, but will still require release of retention in the 2014/2015 budget year. I now take the opportunity to speak to each one.
The removal of all but the retention payments related to the IDB funded New Providence Infrastructure Project, which was substantially completed in January 2013 at an approximate cost of $180 million, the remaining balances allocated for the development of Big Pond Park.
The Queen Elizabeth Sports Centre Redevelopment was substantially completed in the last quarter of 2013. The remaining works, valued at $5 million, relate to upgrading the sewage treatment plant at Yellow Elder. The close-out of this project effectively reduces the 2014/2015 requirement by around $20 million when compared to the previous year.
The Airport Gateway Project, which incorporates the major new arterial road and connector of the LPIA and Western New Providence to the outskirts of Oakes Filed, officially celebrated its completion on 10th October 2013. The opening of the new four-lane dual carriageway with upgraded lighting and utility corridors provides enhanced road safety and significantly reduced commuting time. The estimated contract final sum is in the region of $70 million, with only release of retention due in 2014/2015 budget year.
The Marsh Harbour International Airport in Abaco, which was officially opened at end of May 2014, was contractually and substantially complete in February 2014. The close-out of this project, which supports the growing tourist economy of Abaco and its Cays, will allow a substantial reduction in the Ministry’s 2014/2015 budget with only some relatively minor additional works and retention payments due to be paid in that period.
Mr. Speaker:
During the years 2010 to 2013, capital expenditure heavily favoured New Providence having regard for the New Providence Infrastructure Improvement Project (NPIIP) and the Airport Gateway Project (AGP). This caused critical underfunding for maintenance of existing Family Island infrastructure and new investment.
Notwithstanding, major capital investment since 2010 in Family Islands has included
European Union (EU)-funded projects of approximately $16 million in Ragged Island (for which works are nearing completion),and $7 million on Acklins Island;
Caribbean Development Bank (CDB)-funded projects of approximately $7 million for works on the Three Island Dock in North Eleuthera, Fresh Creek Dock in Central Andros, and Little and Deep Creek Bridges in South Andros;and
Government investment of approximately $31 million for the new terminal at Marsh Harbour Airport on Abaco.
Mr. Speaker:
Some of these are among projects nearing completion or substantially completed and requiring only residual funding in 2014/2015 budget year include:
The Little Creek and Fresh Creek Bridges in Southern Andros were substantially completed early in 2013, with only minor works to be finalised.
The Three Island Dock in North Eleuthera has been substantially completed for some time, but regrettably, challenges with the water supply prevented the issuance formal occupancy certificate. However, a reverse osmosis (RO) plant for treatment of the highly brackish the ground water supply was installed at end of January 2014, and the occupancy certificate has since been issued. Materials for minor outstanding works (fenders and lighting) are now on order and installation is scheduled to be completed forthwith on receipt of same.
Fresh Creek Dock in Central Andros is now substantially complete. Unfortunately, the contractor for this project had taken on too many contractual commitments and focused his resources on the Airport Gateway Contract, the Marsh Harbour By-Pass Contract and the Mayaguana Airport Contract (which was financed and implemented privately by the I-Group).It is worthy to note that completion of those three major projects released the contractor to take care of and complete the Fresh Creek Dock.
Mr. Speaker:
It was and continues to be our priority to turn around the historic under-investment in both capital and maintenance investment in the Family Islands. In pursuing these initiatives, we are mindful of the potential negative impact of hurricanes on national development and the fact that many of the archipelago’s critical sea defences, transport and other infrastructure are located in vulnerable coastal locations where issues of maintenance and repair/upgrading remain.
Particularly vulnerable locations include Fishing Hole Road and Smith’s Point in Grand Bahama; and the roads and seawalls in Cat Island and San Salvador where severe erosion commonly occurs.
Mr. Speaker:
Several projects in New Providence are nearing completion or are substantially completed and require only residual funding in 2014/2015 budget year.
The Redevelopment of Saunders Beach was substantially completed in August 2013. This project has proven to be effective, having withstood the effects of Hurricane Sandy in October 2012, when it was only partially completed, and also the extreme North Easterlies event of late 2013 when severe beach erosion took place at other locations on the coast of northern New Providence. Release of retention only will be required during 2014/2015 budget year.
Road construction and maintenance on New Providence is being executed by implementation of the Road Maintenance and Management System advocated by the Institutional Strengthening component of NPIIP.
A strategically realigned procurement practice has also been introduced by the awarding of relatively small contracts on a local area-by-area basis, thus ensuring the deployment of local resources and the utilisation of small to medium-sized contractors.
Upgrading of facilities at Prince George Wharf has progressed steadily with the longstanding contract for bollard installation finally completed at the end of March 2014, after being addressed by a newly employed Employers Representative consultancy team.
That team also had to accommodate an emergency which occurred in November/ December 2013 when unexpectedly, a longstanding sink-hole on Wharf 16, quickly deteriorated. My Ministry successfully procured and managed the implementation of emergency repair works to the dock, preventing disruption to cruise ship traffic.
Release of retention will be required during 2014/2015 budget year, and provisions have been made for on-going process of rehabilitating and upgrading the waterside environment at this wharf, which remains a major port of entry for significant tourist revenue.
A much needed review of the capacity of the older eastern Paradise Island Bridge crossing is finally reaching fruition with a contract for load testing of the bridge completed in January 2014. The formal report on the load testing is anticipated to confirm the Engineer’s assessment of the load capacity and durability of the bridge, which will allow more permanent remedial measures to be implemented in the forthcoming budget year. This will be funded by the Bridge Authority.
Mr. Speaker:
Other structural engineering contracts projects completed, or nearing completion during 2013/2014 budget year include the reinstatement of the Bailey Town Seawall (damaged by Hurricane Sandy) in Bimini, the refurbishments to Georgetown Dock in Exuma, and the completion of remedials to the Ferry Dock Bridge in Exuma.
On New Providence, they include the completion of the new seawall at Caves (subsequent to its destruction during Hurricane Sandy) and also the completion of the South Beach Culvert, which brought much improved drainage capacity to the area. Release of retention for these projects will be required during the 2014/2015 budget year.
Elsewhere on Family Islands; contracts were let for repairs and ongoing maintenance for roads in San Salvador and for road and seawall repair in Cat Island. A contract for a similar scope of works was also let for road works at Great Harbour Cay in Berry Islands. Also a contract for similar road works in Abaco – Marsh Harbour, Dundas and Murphy Town.
Mr. Speaker:
Among the Miscellaneous Buildings Projects substantially completed are the NEMA Centre on Gladstone Road, the Pompey Museum, the Willie Mae Pratt and Simpson Penn Centres and Phase I of the repairs at the Detention Centre.
As well, required repairs at the new NEMA Centre on Gladstone Road, which were prompted as a result of a fire, are now in-hand.
Mr. Speaker:
Repairs to the existing dormitories at the Detention Centre have been estimated at approximately $600,000 and will be included in the schedule of works for 2014/2015. It is also proposed during 2014/2015 fiscal year to undertake necessary general repairs to the old dormitory buildings –Cottages 1 and 2, and the administration building at the Willie Mae Pratt Centre for Girls. Restoration works at the Welcome Centre on Prince George’s Wharf (including controlled removal of asbestos from the old roof) have been initiated (but delayed pending re-location of the vendor’s booths).
Works on theAnsbacherProjecthave been progressed, with a major restoration contract allowing conversion to supreme court usage and is now approximately 70% completed.
Furthermore, necessary demolition works on all remaining floors at the Bank Lane site were completed just prior to Christmas 2013, and my officers completed negotiations for conversion of that facility into temporary court rooms to facilitate the SWIFT justice initiative. A recommendation for award of a contract with a value of approximately $1.3 million, for the necessary building renovations and fitting out of the courts was considered and approved by Cabinet on the 30thJanuary 2014. The contract was executed and the courts should be functional within this month.
Parallel with those works, my officers have also successfully negotiated with contractors in the sum of $430,000 for the necessary renovations of the first and second floors of the Saffrey SquareBuilding. This facility will accommodate the Industrial Relations Tribunal. Works are complete.
Mr. Speaker:
The Bahamas Agricultural and Marine Science Research Institute (BAMSI) project at the BARTAD2 site in North Andros, which I mentioned earlier, has advanced and is also funded in large part from my Ministry’s budget. Notwithstanding the challenge of inadequatehuman resources, my Architectural Section has successfully designed and procured via negotiated contract award, a total of twenty-two (22) contracts worth just over $20 million (i.e. $20,105,900).
BAMSI facility features student dormitories, administration building, lecture theatre, campus cafeteria and classroom blocks. Eight (8) contracts for early works on the staff accommodation villas were signed in September 2013 funded by the Ministry of Agriculture and Marine Resources (MAMR) and a further fourteen (14) were signed in February 2014. The entire project is currently on track for completion in September 2014.
Other works that will be further advanced during the 2014/2015 fiscal year include the Big Pond Park Development Project Phase 1B, for which a contract in the base sum of approximately $3.8 million was awarded in April 2014. Progress to date has been satisfactory with preliminary works now well in hand. Works are scheduled to be completed before end of October 2014; and appropriate provisions have been made in the 2014/15 budget.
The North Abaco Port design-build project, which is contracted to China Harbour and Engineering Company (CHEC), has also been ongoing with preliminary design activities and is substantially funded by EXIM Bank of China-funded ($40M EXIM and $6M Bahamas Government.)
The contractor’s progress with the site survey and ground/marine investigations was delayed, but these surveys and reviews are now substantially complete.
Correspondingly, my Ministry has now appointed an Employer’s Representative and Project Manager whose role includes design review and responsibility for design and procurement of subcontracts. The prudent management of ancillary works this project has potentially saved around $6.5 million on the side of Government, and further saved on the EXIM provided financing.
The refurbishment and refitting of the Bolam Building to accommodate the Ministry of Tourism will also be undertaken during the 2014/2015 budget year.
Mr. Speaker:
Efforts have been made to further advance the CDB-Funded feasibility studies into the new Port and new North to South By-Pass Highway for Georgetown in Exuma. Additionally, the Tenders Board has recently endorsed my officers’ recommendations for the award of consultancy contracts for feasibility studies into those proposals.These consultancy contracts, which we anticipate awarding in the next few weeks, have a total value of approximately $720,000. We look forward to timely execution of the feasibility studies to enable us to proceed to construction
Efforts have also been made to further advance the CDB-Funded feasibility study for a replacement crossing at the site of Glass Window Bridge, North Eleuthera.
My officers have been reviewing the status and history of the Glass Window Bridge, which has been in a state of disrepair since the early nineties. Its condition now says that it is essential that some action is taken. Taking earlier reports and history of the bridge into consideration, my officers are of the opinion that the most suitable replacement option may not yet have been fully evaluated and are recommending a further feasibility review including assessment of alternative means of procurement.
The CDB has indicated its willingness to consider providing funding for that feasibility review; and provisions have been made in the 2014/2015 budget for those studies to proceed.
Mr. Speaker:
As we bear in mind the expenditure limitations that fiscal constraints dictates by the 2014/2015 Budget Communication, there are projects previously under consideration that mustprioritiseduring the budget year. These include:
Various Ports and Docks/Seawalls and Bridges works to include Sandy Point, Abaco and bridges and docks in Central and North Andros;
New Police and Fire Station for Grand Bahama, with scope reductions and re-tender of contract;
Reconfiguration of attic floor at Office of Prime Minister to accommodate additional storage;
Feasibility studies/outline designs for Fishing Hole Road Grand Bahama and Master Planning study for Cat Island spine road;
Maintenance and Rehabilitation of Family Island Airports at several key airports including George Town,Exuma and North Eleuthera and also for re-surfacing works at Arthur’s Town Airport, Cat Island, New Bight and San Salvador Airport.
North Andros Roads, including BAMSI access road;
Mayaguana Roads;
Smith’s Point Erosion- Grand Bahama; and
Lake Cunningham Waterside Park – off new JFK Drive/AGP, with scope of works reductions.
Mr. Speaker:
My Ministry has undergone the effects of attritionas several senior staff members are no longer attached to the Department of Public Works. These staff members were instrumental in managing the preliminary stages of these projects. Therefore, if any of these projects are to be successfully pursued, strengthening of the human resource capacity is critical.
Beyond the critical human resource deficit, particularly in the Department of Public Works, we are experiencing serious resource deficits to include transport, tools, and equipment and IT provisions.
To date, primarily due to financial restrictions, implementation of essential resource-strengthening measures has been limited to some IT upgrades. My Ministry plans to progress resource implementations during the forthcoming months; however, such is heavily dependent on the cooperation of Ministry of Public Service (for identification of human resources) and Ministry of Finance (agreeing funds to accommodate required expenditure).
The Department of Physical Planning
Mr. Speaker:
Weeping may endure for a night, but joy always comes in the morning. The Director and Staff of the Department of Physical Planning have had every right to cry for many years, Mr. Speaker. The Department has been severely challenged by the lack of space and inadequate staffing.
Notwithstanding these challenges, the staff has outperformed itself, using what they have to cause the Department to serve the public with pride.
Hard work and endurance always pays off in dividends. In this regard, I am very pleased to announce that the Department will be moving to new office accommodations at the junction of Bethel Avenue and J. F. Kennedy Drive.
There, the staff of the Department of Physical Planning and the Subdivisions Section will have ample space to administer all planning functions under one roof. As well, adequate space is available to hold the critical public hearings of the Town Planning Committee, which are important and required issues of the Planning and Subdivision Act.
With this move, the Department expects to recruit additional staff to replace staff lost through attrition and retirement; and to strengthen certain units of the Department by filling vacancies that have obtained for many years. These recruits are necessary for the Department to function properly and fulfil the mandate given it under the Planning and Subdivision Act.
The Department has recently completed draft revisions of the Planning and Subdivision Act. While the draft document retains the present provisions designed to allow proper consultation and review of large and complex development projects, changes are proposed to simplify the process for ordinary applications that comprise approximately ninety-five percent(95%) of proposals submitted to the Department.
Definitive recommendations for amendment are made for projects that require or are likely to require environmental impact assessments (EIAs). As well, the revisions under Section 10 will cause the process for consultation between the Planning Department and other Government/Non-Government agencies and the general public on development projects to be more transparent.
Mr. Speaker
I noted the demonstration at Rawson Square last week, which called for the Freedom of Information Act. I am also encouraged by it because it tells me that democracy is alive and well in The Bahamas. I am even more satisfied that this Government is doing what is necessary to bring matters of public interest to a satisfactory conclusion.
Our predecessors brought sweeping legislative reform to the business of planning in The Bahamas, but never made provisions to accommodate those changes. Planning for development is everybody’s business. That is why we have given priority to the needs of this Department. That is why we are making it happen, Mr. Speaker.
Mr. Speaker:
The Department is currently involved with many strategic planning projects focused on pine islands such as Abaco, Grand Bahama and Andros. These projects will provide the context to guide preparation of land use plans for all islands of the Bahamas and will facilitate administration of certain provisions of the Planning and Subdivision Act.
Finally, it is expected that revisions will be proposed to the Local Government Act to allow proper monitoring of development in the Family Islands and stronger enforcement of planning regulations.
Sustainable development, Mr. Speaker. That is what this Government is busy about doing. We are creating a Bahamas in which we want our children and their children’s children to be able to enjoy living.
Mr. Speaker:
It has been a long-proven fact that the basis for development is good infrastructure – whether physical infrastructure (services for transport, energy, water) or human infrastructure (social services, and services that address safety and security, health, education, nutrition, etc).
And though these infrastructure sectors are diverse, they share the common characteristic of dependence on public policy, particularly in respect of how these services are provided and financed. They also share another distinct characteristic in that investment therein have high economic returns and help the poor the most. Hence, prudent governments recognise the requirement for intensive government intervention in both.
Urban Renewal
Mr. Speaker:
Urban Renewal 2.0 represents an innovative expansion of public policy to channel resources to the poor, meeting them wherever they are, offering a hand up.
Only a caring Government would establish and strengthen such a dynamic and evolving entity as a holistic response to alleviating poverty, preventing and arresting destructive, antisocial behaviour, and remediating the environmental and psychological influences that contribute to crime and criminality. We should all, therefore, plainly see why my Ministry has advocated for substantial investment in physical and human infrastructures.
Mr. Speaker:
In improving the quality of life of residents in urban communities, Urban Renewal, through the Urban Renewal Commission, in conjunction with the Royal Bahamas Police Force and Royal Bahamas Defence Force, assisted by other government and non-government agencies, actively seeks to bring hope, peace and security, and basic necessities to these communities.
To this end, Mr. Speaker, the Government has budgeted a total of $9 million for Urban Renewal projects and programmes uring next fiscal period; $7 million under Head 333 for New Providence and $2 million under Head 744 for Grand Bahama.
While this is investment is substantial for the articulated purpose, more is needed to make a significant and positive impact on those we serve. Government cannot do it alone. That is why the Urban Renewal Foundation was launched in October of 2013. With its introduction, private and corporate sponsors are now able to donate to the Urban Renewal cause without the concern that their money would be lost to the Consolidated Fund.
Albany was the first major contributor to the Foundation committing a total of one million dollars ($1M) over a period of four years. The Foundation is in receipt of the first $¼ million and has already contributed to projects and programmes of Urban Renewal.
The Urban Renewal Foundation Officers and Council Members are fully committed to promoting and marketing the Urban Renewal 2.0 Initiative both locally and internationally, as they recognise that millions of dollars are needed to implement the myriad of programmes required to uplift and empower urban residents across The Bahamas.
Further, the establishment of the Urban Renewal Foundation demonstrates this Government’s commitment to “being above board” and to operating with full transparency and accountability with respect to Urban Renewal programmes.
Mr. Speaker:
Information and evidence are a prerequisite to successful planning. That is why the Ministry of National Security in conjunction with the Urban Renewal Commission recently conducted an Urban Renewal Household Survey involving the three constituencies of Bain and Grant’s Town, Centreville, and Englerston. The results of that Household Survey will inform public policy and determine the design and implementation of additional Urban Renewal projects and programmes. This was a Pilot Project that will soon be repeated in other traditional areas.
The Member of Parliament for Bain and Grants Town and Minister of National Security willaddressed this House on findings of the Household Survey and resultant recommendations. While we have the evidence in hand,Mr. Speaker, we are fully cognisant that there is no easy fix to societal ills as they have developed over decades. However, we have started the process and we are well on our way.
Mr. Speaker:
One major plank in the Urban Renewal Commission’s arsenal to address crime and criminality, which was recently launched by the Rt. Hon. Prime Minister, is the Peace Ambassadors Initiative under the theme “Strength for Today – Bright Hope for Tomorrow”.
This theme aptly describes the vision of Urban Renewal 2.0 Programme.This initiative was launched in response to local reports of conflicts (including gang violence)and the fear of crime, which havecaused some residents to imprison themselves in their own homes.
The Peace Ambassadors Initiative, chaired by Rev. Ruby Ann Darling with Pastor Roslyn Lorraine Astwood as Deputy Chairman, is a volunteer programme of individuals who love God, love people, and love self. They believe in the message of a second chance and redemption.
They believe that The Bahamas is fundamentally a peace-loving country and desire to see peace and tranquillity return to the homes, streets, neighbourhoods, and communities, especially in New Providence and Grand Bahama. They adhere to the Gospel of Peace; walking by faith and not by sight. They promote peace and goodwill across The Bahamas, particularly to residents in traditional urban communities.
As purveyors of peace in word and deed, these Peace Ambassadors, act as counsellors, mentors, and life coaches. The immediate goal is to have 500 volunteers in the Peace Ambassadors Programme by years end – 31st December 2014; change agents, positively impacting the urban/traditional communities across The Bahamas.
Mr. Speaker:
The Co-Chairs (Hon. Cynthia “Mother” Pratt and Hon. Algernon Allen) and officers of the Urban Renewal Commission, continue to collaborate with local and international partners and continue to walk through neighbourhoods, encouraging hurting families and meeting the needs of residents.
Urban Renewal 2.0 has garnered significant support from individuals and organisations who have more recently agreed to partner with Urban Renewal include:
The Bahamas Bar Association has partnered with the Urban Renewal Commission and has pledged to provide free legal clinics to urban residents at the Urban Renewal Centres. The Bar Association will also give training in Mediation, Arbitration, and Negotiation. This training will greatly assist inner city residents, young men in particular, with resolving disputes/conflicts amicably.
Rotary will agree the establishment of Earlyact, Interact, and Rotaract Clubs at the Urban Renewal Centres.
Rotary Club of South East Nassau in sponsoring the programme “Get Moving Bahamas”, to encourage the engagement of residents in physical exercise for at least 30 minutes a day.
Mr. Henry Moss will teach piano music (practical and theory) to young people at the Urban Renewal Centres to supplement the repertoire of the Urban Renewal bands. There are more than 500 Urban Renewal band members at present, and we are aiming to increase this number to over 1,000 by December, 2014.
Pastor Gary Curry, Pastor Emeritus of Evangelistic Temple, Collins Avenue, has generously expended his own private funds to purchase a large bus for the Urban Renewal Band.
Atlantic College will assist high school dropouts through Urban Renewal in completing their high school education through a twelve-month General Education Diploma (GED) Programme covering major subject areas. The course is recognised by the Ministry of Education and accredited by colleges and universities in America. This programme offers hope to school drop-outs as better job opportunities become available to them. I trust that as many Bahamians who are eligible, embrace this wonderful opportunity for acquisition of qualifications that enhance their job marketability.
Second Chance Entrepreneurship Programme managed by Mark Turnquest and Denver Pratt is a non-profit organisation that is committed to giving ex-convicts a second chance through Urban Renewal so that they become contributing members of society.
Grant Thornton Bahamas has partnered with the Urban Renewal Foundation, and will hold an Art Exhibition, giving part proceeds to the Foundation.
Broward County School Board through Ron and Diane Cacciatore of Fort Lauderdale, Florida continues to donate to Urban Renewal. They have sent hundreds of thousands of books and other school supplies, used household furniture, clothes, shoes, and sporting equipment. The Repository for these items is currently at the former Mable Walker Primary School and public and private schools and libraries, along with churches have been beneficiaries of these donations. Mother Pratt has ensured that books were shipped to Grand Bahama, Abaco, Cat Island, Andros, Acklins, Mayaguana, and the other Family Islands to build and enrich school libraries, private libraries, and churches; and
Jones Communications Limited and Love 97 FM with Urban Renewal have promoted the “Love Your Country” Clean-Up Campaign. The goal is to encourage residents to change behaviour, to be more patriotic, to be nationalistic, and to demonstrate love for their country by cleaning their properties and neighbourhoods without being prompted, and to sustain these efforts.
There are also many anonymous donors to Urban Renewal. I thank those anonymous donors along with the individuals and organisations that I have mentioned for their benevolence.
Mr. Speaker:
Recently, the Rt. Hon. Prime Minister lamented the fact that hundreds of boys and young men are being left behind in educational pursuits and involvement in meaningful activities that build character. He noted that young females are in the forefront in educational pursuits and active participation in civic/social organisations. This state of affairs does not bode well for the healthy development of the country.
Further, we are aware that male students, especially those from single parent homes, are more likely to be attracted to gangs during Junior High School. This is therefore the time when all efforts must be made to involve these male students in positive, wholesome activities.
Mr. Speaker:
Young men in every society have meaningful roles to play. Therefore, they must be nurtured to fulfil their God-given destiny.
In addressing the cited imbalance and this unhealthy state of affairs, the Hon. Algernon Allen, Urban Renewal Commission Co-Chair, is sponsoring and coordinating the Bahamian Male Mentorship Initiative (BMMI). He invites Bahamian men to join this righteous struggle to save boys and young men.
Mr. Speaker:
Last year, the Hon. Cynthia “Mother” Pratt, launched the Prayer Vigil Initiative and prayer warriors from churches and prayer groups held prayer meetings on parks, beaches, at Police stations and schools, in every constituency in New Providence. Mother Pratt, now joined with the Peace Ambassadors and the prayer warriors are continuing the Prayer Vigil Initiative in every community in New Providence.
Mr. Speaker:
The Urban Renewal Sporting League is the umbrella organisation catering to all major sporting activities within Urban Renewal.The summer months are approaching and during this time, Urban Renewal will further promote the Inter-Community Centre competition in which young people will participate.
The Urban Renewal Commission has partnered with Street Legends, a respected and well-organised urban sporting entity under the presidency of Mr. Wilton Russell, to conduct basketball tournaments in respective urban areas during ten weeks of summer and it is envisioned that some five thousand young people from all over New Providence will be involved in these activities.
During the basketball tournaments to be held at community parks, communities will come together to sponsor community festivals, promoting unity and cohesion, safety and security, and economic infusion. The residents will set up craft and food stalls, selling indigenous items and native food; and during the games’ half-time, guest speakers will address players on moral and ethical conduct.
It is envisioned that after the summer, Street Legends along with retired sports professionals will continue sporting endeavours in urban communities with track-and-field and other activities.
The Urban Renewal Commission invites to volunteer their time to teach and coach young people. Their expertise and experience are desperately needed; and those individuals who do come forward, I believe will be richly blessed.
Mr. Speaker:
The First Phase of the Small Home Repairs Project was a resounding success. Over a period of three months, in excess of three hundred (300) houses were repaired, twenty-five (2,500) individuals were directly and indirectly employed, and the urban communities profited from the direct financial investment.
Mr. Speaker:
The Urban Renewal Commission Co-Chairs ensured that houses in most of the constituencies in New Providence that qualified for the Small Home Repairs, were repaired. I highly commend the Co-Chairs for their commitment and impartiality in matters related to Urban Renewal.
Mr. Speaker:
I believe in giving a second chance to individuals who have run afoul of the law. Many of the Small Home Repairs contractors have tarnished criminal records; in fact, a few were out on bail. This Government deliberately retainedthose who had the requisite construction skills and gave them contracts to repair houses, and they embraced the opportunities and executed quality repair works.
Mr. Speaker:
The Government realises that if the Urban Renewal Commission employsindividuals with criminal records to assist with small home repairs, there is a high probability that they would be motivated to refrain from criminal activity, and continue to seek gainful employment.
The Small Home Repairs Project will continue over the next fiscal year with priority given to repairing the homes of the elderly, mentally and physically challenged, and single parents. As per the Government’s policy, contractors and tradesmen, as far as practicable, will be drawn from the respective urban communities in which houses are to be repaired.
Mr. Speaker:
I remind Bahamians that Urban Renewal is responsible for the Small Home Repairs Project. There is a ceiling of $10,000.00 on each Small Home Repair contract for home repairs, with Quantity Surveyors working with the contractors to assess realistic costs for the small house repairs and to ensure quality repair works. While there have been instances that indicated new constructs, Urban Renewal is not in the business of constructing new houses. The construction of Government Low Cost Houses falls within the purview of the Ministry of Housing.
Mr. Speaker:
You would recall the environmental and psychological influences that negatively impact criminal behaviour that I cited earlier in this presentation.It is a fact that Urban Agriculture positively affects these influences.
The Urban Renewal Commission, in conjunction with the Ministry of Agriculture, Marine Resources, and Local Government and Bahamas Agricultural and Industrial Corporation (BAIC), will continue to promote backyard gardening, community farming, and greenhouse production. We see it as a powerful vehicle to promote sustainable development and improve the quality of life in urban communities.
Tree planting and the care of trees, in particular, work wonders for one’s health and overall wellbeing. Communities are encouraged to plant trees, hundreds of trees, and reap the numerous benefits that they provide. I therefore challenge residents in New Providence in particular, to go on a tree planting expedition.
Mr. Speaker:
With regard to Urban Renewal activities on Grand Bahama and the Family Islands, there are:
Eight (8) centres on Grand Bahama
Three (3) on Cat Island
Two (2) on Abaco, and
One (1) on Bimini.
During the 2013/2014 fiscal year, the $1 million allocation under Head 74 for Urban Renewal at the mentioned locations was spent on executing many social and educational projects and other programmes in partnership with the corporate community of Grand Bahama, Abaco and Bimini to whom we are most grateful. These projects were deemed to have a positive impact on the lives of the indigent, schoolchildren and families with various needs.
The sum of $2 million has been allocated to the Ministry of Grand Bahama for Urban Renewal initiatives in the 2014/2015 budget. It is planned that $1 million will be utilised for urban programmes, maintenance of Urban Renewal Centres, rental agreements, office upkeep and supplies; and $1 million will be spent on minor house repairs in Cat Island, Abaco, Grand Bahama and Bimini.
Mr. Speaker:
Despite the challenges of increasing levels of revenue intake in the current economic environment, the statutory authorities that fall within the purview of my Ministry (Straw Market Authority, Bahamas Electricity Corporation Water & Sewerage Corporation, and Bahamasair) have all managed their financial challenges well under the existing circumstances.
Straw Market Authority
The Straw Market Authority, which is the youngest among these agencies has had three (3) Chairmen since its inception in 2011, and is now considered to be ‘stabilised’. The Authority has embarked on a focused effort to ensure a smooth and efficient operation. The recipient of a $200,000 Government subvention in the closing fiscal year, the Authority assisted with major infrastructural demands and regular business operations. The Authority is constantly working with the Stall Holders to keep their stalls open, realising their importance to the overall tourism product. Challenging though this may be, it continues to employ all efforts to ensure that the vendors remain in business and can provide for their families. The Straw Market Authority is not in the business of putting vendors out of business, and where necessary, have made long-term payment arrangements with Straw Vendors in arrears.
As the Authority is mandated to have responsibility for Straw Market venues throughout the archipelago, assistance from the Central Government is paramount to the success in this embryonic stage. To ensure guests of the markets have an opportunity to purchase authentically Bahamian-made souvenirs, the Authority will work closely with all local handicraft producers and artisans to have their items in the markets. The Authority recognises the importance of “Believe in Bahamians” and “Bahamians First”. In this regard, vendors will be required to have 90% Bahamian made products in their stalls. This will guarantee that the money stays at home, and create entrepreneurial opportunities for handicraft producers and artisans resulting in more jobs for Bahamians.
Straw Vending is a unique and interesting sector of the economy. Unlike others, this sector continues to replenish itself as there are up to fourth generation vendors operating in the markets. Vendors take pride in telling you that they were born in the straw market. Some vendors have graduated from colleges with degrees and after working in other disciplines including nursing, teaching, banking return to the straw markets. Additionally, those in the plaiting and processing of straw are never without work. As straw markets expand, so does the need for plaiting and processing. The opportunities that could be derived from the Straw Markets are yet to be exploited. I have every confidence that the Authority in collaboration with the Straw Vendors and Carvers will cause all markets within The Bahamas to become “World Famous”.
To standardise quality and services, a recommendation will be made to amend the Act and Regulations that govern the Straw Market Authority Market.
Key achievements during the 2013/2014 budget year include
the provision of Wi-Fi facilities at the Downtown market,
launch of the SMA5 website,
installation of infrastructure to support the installation of fans at the Downtown market,
provision of new and improved security and cleaning services for the Authority,
the establishment of the needed system to facilitate vendors accepting credit cards as a form of payment, and
the introduction of a Customer Relations Department to address credit and collections issues. This department is now working diligently with Stall Holders to improve the Authority and Vendors relations. As a result, the accounts receivables have shown evidence of being reduced.
Mr. Speaker:
The Authority is projected to generate $1.3 million in revenue and projected to incur $1.5 million in operating expenses. The shortfall is expected to be funded by advances from Central Government. Advances from Central Government will have to finance capital expenditure. The SMA will assume responsibility for the Fort Charlotte market within the coming financial year.
Bahamas Electricity Corporation
Mr. Speaker:
I now turn my attention to the Bahamas Electricity Corporation (BEC), which continues to struggle financially. Cash flow continues to be limited resulting in delayed payments to vendors and other service providers. Losses continue to increase and major contributors to the losses include bad debt, the early retirement package, and rental generation (which ceased in November 2013). The balance owing to banks that are in the current year amounts to $239 million as the refinancing has been delayed; consequently long-term borrowings have decreased. However, the corporation continues to take steps to reduce costs, which includes further reduction of overtime.
Mr. Speaker:
Adding to BEC’s financial struggle is defaulting customers. Accounts Receivables derived from the private sector (individual and corporate) continue to increase as a number of customers remain unable to meet payment arrangements. Even with revised payment arrangements, too many customers continue to default. Government receivables increase as well because many of the government agencies are not paying sufficient on their monthly bills. The Corporation understands that the foregoing may be a symptom of the protracted challenge of the economy. However, it is also easily understood why this situation cannot continue indefinitely as the Corporation also has tremendous financial commitments. In this regard customers are encouraged to pay their bills in a timely manner. For those that have payment arrangements, customers are entreated to honour them.
BEC undertook the following major projects during the 2013/2014 fiscal year:
Generation Expansion was realised with the commissioning of a 24 megawatt combustion turbine, which increased efficiency over the one that it replaced. This increased the generation capacity in advance of the projected load growth due to the Baha Mar Project.
A new Waste Heat Boiler was installed at the Clifton Pier Power Station. Completion of this project will result in improved steam production capabilities and hence more efficient operations at Clifton Pier.
Mr. Speaker:
An expanded and upgraded Supervisory Control and Data Acquisition (SCADA)System is at an advanced stage of installation. This will assist with data collection and reduce outages times and, in some instances, prevent outages.
To improve parking for customers and employees, the Tucker Road Administration Parking Lot Project was undertaken.
The Big Pond Wall Project was also undertaken to improve the security of employees and assets. The project entailed the construction of the Big Pond Compound perimeter wall.
The CCTV Project is at an advanced stage of installation, and purposed to improve the security of employees, customers and assets.
Mr. Speaker:
In preparation for the summer peak, Major Overhauls/Maintenance of various generators have been completed.
Outstanding matters at the Abaco, Bimini and Hatchet Bay Power Stations are being addressed with the contractor, Man Diesel, to ensure that they are resolved.
BEC installed temporary supplies for the construction phase of the BAMSI Project and await final technical details so that a permanent design can be carried out.
The Corporation awaits final technical details from the Bimini Bay developer so that a final design for the project can be prepared.
While announcements have been made for a number of Family Island Development Projects, in a number of instances BEC awaits technical details so that designs may be carried out and works completed in advance of firm projects.
Other activities are ongoing at the Corporation.Residents are being advised to make appropriateHurricane Preparednessintervention; and tree trimming exercises have begun.
Staff activities including Training and Development Initiatives are on-going. Along with this, the Corporation continues to promote Health and Wellness and recently had a Health Challenge among Corporation teams.
Mr. Speaker:
The IT System will need to be modified to accommodate the introduction of VAT. BEC busy about agreeing the software provider to continue once a definitive position regarding VAT is received.
Mr. Speaker
Members will recall that the RFP process for the Reform of the Bahamas’ Energy Sectorbegan in August last year with 13 participants entering the first round of bidding. The technical proposals submitted by the bidders were evaluated resulting in 6 bidders progressing through to the second round. Evaluation of the bids included a detailed financial analysis undertaken by KPMG Corporate Finance, a technical review and valuation of BEC’s assets performed by DNV KEMA and comments on bidders proposed mark-ups to the proposed transaction terms was provided by Hogan Lovells.
Following this analysis, 5 bidders were invited to a third and final round of bidding. Each was asked to further clarify key areas of their bids, such as fuel sourcing, refinancing of BEC legacy debts and proposed labour plans and present their proposals to a Committee of selected Ministers, senior Government officials and representatives of KPMG. A proposal supported by the Board of BEC has also been submitted and evaluated. Recommendations as to the preferred bidders have been provided to the Committee and Cabinet by our advisors and these recommendations are before Cabinet. A decision is likely to be made in the next two weeks.
Mr. Speaker:
Alongside the current RFP process, the Government has also considered the reform of the current electricity legislation and regulatory environment. URCA has been selected as the regulatory body which will have the necessary oversight of the electricity sector. The proposed New Energy Sector Policy, proposed amendments to the URCA Act, proposed amendments to the Electricity Act and proposed Renewable Energy Bill are still under review and will be brought to the Parliament in due course.
Water & Sewerage Corporation
Mr. Speaker:
Let us turn our attention to the Water & Sewerage Corporation (WSC). Water & Sewerage received $39M ($20M initial allocation and a $19M supplemental) in total subsidies for the 2013/2014 fiscal year with the majority of them allocated to pay for desalinated water purchases, and the remainder is for debt service. Based on this level of subsidy, it is expected that arrears to Consolidated Water, the largest diesel water supplier, will be reduced to just under 90 days. Subsidy of $20Mn is allocated for the 2014/2015 budget.
Refurbishment works in New Providence for the previous (2013/14) and upcoming fiscal year, will continue to focus on addressing water quality and service challenges such as red water, and low pressures. It is also expected that improvements in post-treatment practices will improve water quality (red water) challenges that continue to plague the island. Additionally, water main replacements will also include infrastructure identified with excessive leakage or failures as part of the non-revenue water (water loss) reduction program.
Mr. Speaker:
Work continues on the Gladstone Road Wastewater Treatment Plant with completion scheduled to coincide with the opening of Baha Mar. As previously reported, WSC received a $10 million NIB loan for construction of a 1.0 million imperial gallons per day (Mig/d) wastewater treatment plant to serve Baha Mar and surrounding developments.
As part of the Government’s plans for development in the Family Islands, the Corporation will address water supply and infrastructure needs in South Andros, Mayaguana, Long Island, North Eleuthera, and Cat Island.
Implementation of the IDB water Support Program is progressing well under the four major components:
- Non-Revenue Water reduction
- Institutional strengthening
- Wastewater master Plan and Rehabilitation
- Regulatory reform
Mr. Speaker:
As a result of NRW reduction efforts, the Corporation has not experienced any challenges with meeting water demands for over six months. Additionally, WSC has been able on occasion to reduce water production at the desalination plants due to the reduction in NRW. In just over 18 months, Miya Bahamas Ltd has been able to reduce NRW by over 1million gallons per day. The financial benefits of this program are expected to be realised in the upcoming fiscal year.
The preparation of a wastewater master plan for New Providence is also underway and $15 million worth of rehabilitation work is expected to be tendered with the next 6-8 months.
Mr. Speaker:
Work has also commenced on the legal and regulatory reform of the sector with legislation expected to be drafted and tabled in Parliament this calendar year. This will lead to improved customer service through more accountability and efficiency within the Corporation through the assignment of URCA as an independent economic regulator and, the consolidation of regulatory powers and responsibilities for the sector under the Ministry of Environment.
Bahamasair
Mr. Speaker:
I am pleased to have the opportunity to report on Bahamasair, the national flag carrier of The Bahamas.
Before proceeding, however, I must acknowledge the great efforts made by the Board of Directors, Management and Staff of Bahamasair. The team is achieving noticeable improvements in the areas of finance and operations.
Mr. Speaker:
Bahamasair’s recent performance data clearly indicates that the airline is making progress towards becoming less burden to the Bahamian tax payers. As recent as Fiscal Year 2011/2012 Bahamasair’s net loss was $26.6 million. The projected loss for this fiscal year which ends 30thJune, is $15.6 million. Bahamasair’s budgeted deficit for fiscal year 2014/2015 is $16.6 million including recently introduced business licence fee of $1.2 million.
Mr. Speaker:
The fact that the government has reduced Bahamasair’s subsidy from $18.6 million this year to $15.0 million next demonstrates confidence in the performance of the administration and operations of the airline.
The number of customer complaints is trending down for the past three years and shows a 6.7% decrease year over year. Customer complaints are normally driven by delayed flights, damaged or lost baggage. However, the number of baggage complaints is decreasing due to the implementation of new baggage policies and procedures which includes a 24 hour guarantee in delivering delayed bags, improved loading, offloading and reconciliation process. Bahamasair is averaging 0.51 bags per 1000 passengers for delayed or missing bags, compared to the industry average of 4.21 bags per 1000 passengers.
Mr. Speaker:
Even though we are encouraged by these modest improvements, Bahamasair is still a long way from profitability, and I must admonish all employees from the Managing Director down not to take this and the continued high level of Government subsidies for granted, but rather remain or become steadfast in performing their duties in order to provide top level service while protecting the interest of the taxpayers.
Mr. Speaker:
While much efforts are being made to reduce expenses, the primary focus is geared towards increasing revenues. The Board has advised me that in addition to enhanced yield management of regular passenger fares, much potential exists in the charter market and the recently purchased third jet will serve to boost this area.
Mr. Speaker:
The greatest challenge facing the airline at the moment is with bringing conclusion to expired industrial agreements between the company and four associated trade unions. These agreements have expired since 2009, and it is the government’s desire that terms and conditions could be reached that would represent a viable future for the airline and its six hundred and forty one employees. We are hoping that this would be accomplished before the end of this year.
Mr. Speaker:
I began my contribution by noting that the Family Islands offer such diverse potential for Bahamians. Employment is key among them, if the infrastructure and opportunity properly present themselves. The hardworking staff of my Ministry under the leadership of Permanent Secretary Colin Higgs deserve commendation. They are making things happen with the bare minimum. They are tasked with planning for the sustainable development of this country that we call home. It is an awesome burden, but they are committed to do what it takes.
In the Urban Renewal Commission, provisions are being made for the strengthening of our human capital. Under the leadership of Permanent Secretary Diana Lightbourne, the Urban Renewal Team is assisting so many with hands up. Urban Renewal is incrementally moving into the Family Islands. We care about Bahamians wherever they are.
I also extend thanks and encourage the GMs of WSC, BEC, and Bahamasair to continue working hard for the Bahamian people.
Mr. Speaker:
Permit me to divert for only a minute. Yesterday, the Member for Golden Gates, who has responsibility for National Insurance, noted that since May 2012, 43,000 new employees have registered with the National Insurance Board. This Government came to power with the promise of 10,000 jobs. He also said that approximately 13,000 of that number have been dropped during the same period. Just in case any of you missed it, that is a promise kept! Tangible numbers cannot lie!
Mr. Speaker:
Before I take my seat, I thank the Minister of Finance for presenting the most reasonable budget that Government can at this time. In expressing that appreciation and my Ministry’s commitment to our mandate, I am happy to give every assurance that Cat Island, Rum Cay, & San Salvador fully supports the budget proposal for Fiscal Year 2014/2015.